The Consumer Price Index for All Urban Consumers rose 5.3 percent for the 12 months ending August 2021, a smaller increase than the 5.4-percent rise for the year ending July.
Prices for all items less food and energy rose 4.0 percent over the last 12 months, also a smaller increase than the year ending July. Energy prices rose 25.0 percent over the last 12 months, and food prices increased 3.7 percent; both were larger than the increases for the year ending July.
Prices for food at home rose 3.0 percent over the year ending August. Prices for five of the six major grocery store food groups increased over the year. Prices for food away from home rose 4.7 percent over the last year. Prices for limited service meals rose 6.9 percent, while prices for full service meals rose 4.9 percent.
Gasoline prices rose 42.7 percent over the last year. Prices for electricity increased 5.2 percent, its largest 12-month increase since the year ending March 2014. Natural gas prices rose 21.1 percent over the last 12 months, the largest increase since the year ending August 2008.
Gasoline and Energy Cost Rose in Record Rates Over 12 Months.
How will consumers manage to compensate for substantial increases, e.g. a gasoline price increase of 42.7% over 12 months?
Prices for all items less food and energy rose 4.0 percent over the year ending August. Used car and truck prices increased 31.9 percent, while prices for new vehicles rose 7.6 percent, the largest 12-month increase since the year ending June 1981. Prices for shelter increased 2.8 percent over the year ending August, and medical care prices rose 0.4 percent. Prices for physicians’ services rose 3.9 percent and prices for hospital services increased 3.5 percent.
Note: This article was first published in TED: The Economics Daily on September 17, 2016.
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